British company JCB, resident of Esipovo industrial park near Moscow, has applied for registration of production facilities using the SPIC mechanism
On the eve of the Russian Minister of Industry and Trade Denis Manturov said that the British manufacturer of road and construction equipment - JCB - filed two applications for the Special Investment Contracts (SPIC) for the production of backhoe loaders and telescopic handlers.

According to the head of the Ministry of Industry and Trade, this decision demonstrates the interest of European companies in establishing modern production facilities in Russia, and the Ministry of Industry and Trade supports such projects.

"Who the SPICs will end up with will depend on the outcome of the tender; it may be won by others - both Russian and foreign manufacturers. European companies take into account in their plans and industrial policy the strategy of entering the Russian market with their technologies and products - this means it is interesting for manufacturers from Western Europe, from Great Britain. We, in turn, create conditions at the systemic level for companies to actively invest in Russia," Manturov said.

The Ministry of Industry and Trade also reported that the draft executive order extending the list of technologies for SPIC has been submitted to the Government. Once it is approved, it will be possible to hold a tender for the contract, in which interested manufacturers will be able to participate.

Earlier Moscow Region Governor Andrei Vorobiev announced that JCB was planning to build a specialised machinery assembly plant for 300 jobs in Yesipovo industrial park in Solnechnogorsk urban district of Moscow Region.

"It is very valuable for us that a pool of significant foreign investors is being formed in the Esipovo Industrial Park, which is managed by the Moscow Region Development Corporation. In particular, Russia's only Mercedes-Benz plant is already operating in Esipovo. AVK Armature, one of the largest international concerns for the production of pipe fittings for water supply, wastewater treatment, gas supply and fire-fighting, plans to produce shut-off valves. Trelleborg Sealing Solutions will build production of industrial seals made of polymer materials. In addition, several other major investment contracts are expected to be signed in 2022 with foreign companies planning their production in the Esipovo IP. It is also important that the JCB project is planned to be implemented using the SPIC mechanism. For example, the Mercedes-Benz plant project is localised using SPIC version 1.0. The possibility to enter into a special investment agreement SPIC version 2.0 has become one of the determining factors in the decision of a major European company to localise its production in Russia. Use of the SPIC mechanism will contribute to the localization of new foreign companies in the Moscow region, increase the investment attractiveness of the region, and create new high-tech productions and jobs", - said Vladimir Slipenkin, General Director of the Moscow Region Development Corporation.

As a reminder, the mechanism of the special investment contract SPIC allows to attract major private investments in the development of innovative solutions and the creation of high-tech industries, primarily for the production of competitive domestic products. For its part, the state guarantees such an investor favourable, clear and unchangeable investment terms, including tax incentives and special land lease terms without tenders.

SPIC 2.0 provides for the conclusion of contracts for up to 15 years, if the investment in the project does not exceed RUB 50 billion. If the amount is higher, the term of the agreement may be extended to 20 years.

The Moscow Region is open to cooperation with new foreign and Russian companies in the fields of medicine, industrial production, logistics, electronics and other sectors.
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